Jakarta. Indonesian stocks opened higher on Wednesday, with the benchmark index gaining 14 points, or 0.22%, to 6,700 before reversing course and trading in a volatile range of 6,678-6,707.

Market sentiment was supported by the reopening of Soekarno-Hatta International Airport after it was temporarily closed due to volcanic ash from the eruption of Mount Anak Krakatau, as well as an increase in Indonesia’s foreign exchange reserves in August, Phintraco Sekuritas said.

According to RTI data, 721.16 million shares had changed hands in the early minutes of trading, with total transactions reaching Rp 362.78 billion ($20.65 million) across 61,821 trades. A total of 318 stocks gained, 106 declined and 253 were unchanged.

Investors are also awaiting the release of August consumer confidence data on Wednesday. Phintraco Sekuritas expects the consumer confidence index to edge up to 117 from 116.8 in July.

“However, investors should be wary of a potential pullback due to profit-taking triggered by rising oil prices,” Phintraco Sekuritas wrote in its research note on Wednesday.

Kiwoom Sekuritas Indonesia said investment interest in the new and renewable energy sector remains concentrated in solar power plants (PLTS), supported by increasingly efficient and mature solar panel technology.

The government sees PLTS as one of the main pillars for driving the national energy mix, while the development of nuclear, ocean wave and other renewable energy sources still faces risks and requires a greater degree of technological transition, Kiwoom said.

The government is also preparing a new incentive scheme to replace the tax holiday that ended in 2025, as Indonesia implements the Global Minimum Tax, which could reduce the benefits of tax exemptions for foreign investors.

Global markets provided a weaker backdrop. Wall Street closed lower on Tuesday as rising Middle East tensions, higher expectations for a Federal Reserve rate hike and selling in the healthcare sector weighed on sentiment.

The S&P 500 fell 0.58%, while the Dow Jones Industrial Average declined 1.18% and the Nasdaq Composite dropped 0.32%.

In Asia, Japan’s Nikkei 225 rose 0.25%, while South Korea’s Kospi gained 0.80%.

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